Superdry plc

Group revenue decreased 23.5% to £219.8 million. Gross margin improved 1.9 percentage points to 54%. Operating costs before adjusting items were down 16.1% in the half year, and adjusted loss before tax was £25.3 million; finance costs were £9.3 million. Statutory profit after tax was £2.8 million, helped by £36.3 million of APAC brand-rights sale income offset by a £10.2 million IFRS 16 non-cash impairment charge. Inventory fell over 24% to £130.9 million, net cash and cash equivalents were £27.8 million, and net debt was £28.9 million at period end. For the full year, management said the cost-efficiency program is set to deliver in excess of £40 million of savings, with over £20 million already achieved in H1, and inventory is projected to end around 7 million units.

Julian Dunkerton framed the period as painful but said the business is making progress in its turnaround. He emphasized three priorities: improving efficiency, simplifying the business through IP sales and store reshaping, and building a more targeted product and operating model. His tone was defensive about the share price move and liquidity concerns, but optimistic about product, lower costs, and a more sustainable future.

Shaun Wills focused on the financial reset: revenue pressure, margin improvement, and tighter cost control. He cited over £20 million of H1 savings, a 54% gross margin, £130.9 million of inventory, £27.8 million of net cash and cash equivalents, and £28.9 million of net debt at the half year, while noting cash was around £30 million this morning. He also said there is no need for new capital at this stage, with working capital and liquidity being managed through existing facilities, stock reduction, and ongoing supplier support.

Analysts asked whether stock reduction would limit borrowing under the Bantry Bay facility, and Shaun said it would have some effect in theory, but only a small practical impact because much of the borrowing is tied to current stock and other qualifying inventory. Questions also focused on weather sensitivity, to which Julian said Superdry needs less reliance on heavy jackets and more knitwear, fleece, and transitional products. Management said there is no current need for new capital, expects debt at year-end to be broadly in line with last year, and said there are no concerns on creditor terms.